Servitization in Manufacturing - The case of ABB Kabeldon

University essay from Göteborgs universitet/Graduate School

Abstract: In this qualitative case study, the phenomenon of servitization is analysed for ABBKabeldon, a conventional manufacturer located in Sweden, with the purpose offinding the factors that influence the servitization potential of cable distributioncabinets and how best to address them. The conclusion reached is that thefactors can be divided into key motivators, the rationale for the strategy, andchallenges, the hurdles that lead some companies to a service paradox. Inthis case, the key motivators consist of profitability, customer relationships, andcompetitive advantage. The challenges comprise customer management, businessmodel, development process, organisational structure, regulations, market readiness,and value chain. The last three challenges emerged from the empirical analysis andall other factors were present in the literature and empirically.

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